Leeds property news: latest mortgatge figures from CML

The Council of Mortgate Lenders (CML) has released new data on the characteristics of UK lending in March and the first quarter of 2015, broken down by trends to first-time buyers, home movers, remortgaging and buy-to-let.

Total number of loans advanced to first-time buyers in March was 23,000 - up 20 per cent on February but five per cent down compared to March 2014. First-time buyers borrowed £3.4bn, which was up 21 per cent on February and three per cent up on March last year.

Home movers took out 25,200 loans, an increase of 14 per cent compared to February but down three per cent year-on-year. These loans were worth £4.9bn - up 17 per cent on February and seven per cent compared to March 2014.

Remortgage lending increased month-on-month with 26,600 loans advanced - up 19 per cent on February and six per cent up on March 2014. The value of these loans (£4.2bn) also increased month-on-month by 24 per cent and was up 14 per cent year-on-year compared to March 2014.

There were 18,200 buy-to-let loans in March - up 12 per cent on the previous month and up 21 per cent compared to March 2014. These loans were worth £2.7bn, up 13 per cent compared to February and up 35 per cent on March 2014.

First-time buyers took out 61,300 loans in the first quarter 2015 - down 24 per cent on the fourth quarter of 2014 and 11 per cent down on the first quarter of 2014. First-time buyers borrowed £9bn, which was down 23 per cent on the fourth quarter of 2014 and a year-on-year decrease of five per cent compared to the first quarter 2014.

Home movers took out 70,400 loans, a decrease of 25% compared to the fourth quarter 2014 and a decrease of 11% year-on-year. These loans totalled in value £13.5bn - down 22% on the previous quarter and 5% down year-on-year on the first quarter 2014.

Remortgage lending increased quarter-on-quarter with 75,400 loans advanced - up 3% on the fourth quarter 2014 but down 5% on the same quarter last year. The value of these loans (£11.8 billion) also increased quarter-on-quarter by 6% and was up 2% year-on-year compared to quarter one 2014.

There were 52,300 buy-to-let loans advanced in the first quarter of 2015 - down 3% on the previous quarter but up 15% on the same period in 2014. These loans were worth £7.8bn in value, up 1% compared to the first quarter and up 28% on the first quarter of 2014.

Paul Smee, director general of the CML, commented:

“It was a slow start to activity in the first couple of months of 2015 but the market started to get out of the dip in March, a trend that we think will continue as the year goes on.

“We will have to wait and see how the housing market reacts to the general election result and the reduction in the risk of a prolonged period of market uncertainty which could well have been damaging to businesses and the housing market.”

As previously reported, gross mortgage lending reached £16.1 billion in March. This represents an 18% increase from February’s gross lending total and 5% higher than lending in March 2014. This means gross lending for the first quarter of this year was £44.5 billion - down 13% on the previous quarter and a 4% decrease on the first quarter of 2014.

Lending for home-owner house purchase

Home-owner house purchase lending increased month-on-month by volume in March to 48,200 - up 16% on February but down 4% compared to March 2014. These loans totalled £8.2bn, which was up 17% on February and 4% on March last year.

This meant that loans advanced for home-owner house purchase in the first quarter of 2015 was 131,800, a decrease of 24% on the fourth quarter of 2014 and a year-on-year decline of 11% compared to the first quarter 2014. These loans were £22.4 billion in value - down 23% on the previous quarter and 5% down on the same quarter in 2014.